Condo associations must be very careful when asking for bids on a repair project. All unit owners rely on the board for safe and efficient repairs while spending as little as possible to ensure the work is done correctly.

Key Items for RFPs

When drafting a request for proposal (RFP), condo associations must consider the length and scope of warranties, bonding capability of the contractor, excluded work, change orders that will take place during the work, schedule mobilization and demobilization, risk allocation, and who is responsible when delays occur. 

 

Some tips for making the RFP process as smooth as possible include:

• Use a uniform bid response sheet to ensure you compare all applicants using the same criteria.
• Require a sample written warranty for workmanship and any manufacturers included in the bid.
• Require a list of references for recent projects, contact them, and ask detailed questions about the process and results.
• Consult your attorney now, don’t wait until after the repair contractor has been selected. 
• Have your attorney include key contract terms and conditions within the RPF document. 
• Ensure that all contractors agree to these terms or submit objections with their bid response. 

 

Some of the items your condo association attorney will include are things like:

• The length and scope of warranties.
• Indemnification.
• Bonds.
• Excluded work/change orders.
• Schedule.
• Weather days.
• Property damage and repairs.
• Insurance requirements.
• Responsibility for delays.
• Liquidated damages, etc. 

Key Items During the Planning Process

When you sit down to plan out your request for proposal, keep in mind these management tips and things to go over with your legal counsel. 

• Your attorney can negotiate the contract with the property manager or owner’s representative.
• Consider your funding sources for the project (i.e., special assessment, a loan, reserves, etc.). 
• How will you handle approval requirements (for the funding method, for any alterations and improvements, etc.)?
• Be sure to have a section protecting yourself against unapproved material alterations after the work has begun. 
• Consider conflicts of interest (special requirements exist due to statutory changes and your legal counsel should get involved as soon as a potential conflict is identified).
• Think about project-related account issues. For example, the correct application of special assessments or reserves. Proper bookkeeping is essential for these types of projects. 
• If you decide to fund the project with a loan, you will need to be concerned with loan compliance. 

Even seemingly simple repair projects can go wrong. Therefore, it’s essential to contact your attorney before even drafting the RFP and getting any bids. Call Haber Law today for a free consultation and discuss your condo repair solution. 

 

About the Author: David Podein is a partner with Haber Law and has been with the firm since 2009. He concentrates his practice in the areas of real estate, condominium/community association representation, secured financing, and related business matters.